SunTrust Banks Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component SunTrust Banks (NYSE:STI) will unveil its latest earnings tomorrow, Friday, January 18, 2013. SunTrust Banks is a financial services holding company whose businesses provide a range of financial services to consumer and corporate clients.

SunTrust Banks Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 61 cents per share, a rise of more than twofold from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 63 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 62 cents during the last month. For the year, analysts are projecting profit of $3.56 per share, a rise of more than twofold from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported net income of $1.98 per share versus a mean estimate of profit of $2 per share. In the second quarter, the company beat estimates by 6 cents.

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A Look Back: In the third quarter, profit rose more than fivefold to $1.08 billion ($1.98 a share) from $215 million (39 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 63.3% to $3.99 billion from $2.44 billion.

Here’s how SunTrust Banks traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Wall St. Revenue Expectations: Analysts predict a rise of 14.3% in revenue from the year-earlier quarter to $2.32 billion.

Stock Price Performance: Between November 14, 2012 and January 14, 2013, the stock price had risen $2.65 (10.4%), from $25.44 to $28.09. The stock price saw one of its best stretches over the last year between August 6, 2012 and August 17, 2012, when shares rose for 10 straight days, increasing 6.1% (+$1.46) over that span. It saw one of its worst periods between October 17, 2012 and October 24, 2012 when shares fell for six straight days, dropping 7.8% (-$2.29) over that span.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 38.9% in the first quarter and 54.5% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 13.8% in the fourth quarter of the last fiscal year, 1.1% in the first quarter and 1.1% in the second quarter before climbing in the third quarter.

Analyst Ratings: With 12 analysts rating the stock as a buy, four rating it as a sell and 11 rating it as a hold, there are indications of a bullish outlook.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)